Why You Should NOT Trade the First 30 Mins When the Market Opens

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24 COMMENTS

  1. I disagree. First half hour is the money shot. I do 80% of my trades here. I exercise my straddled option spreads with that volatility and allow the smoke to clear before preparing for the next day. I also hedge with equity and bull/bear credit spreads. I do my best to maintain a delta neutral portfolio only trading highly volatile stocks. Just made 10k from the semiconductor market this last month.

    I would agree, though, that new traders wait until the dust settles and remember to due diligence for every stock.

  2. It helps to wait and have some structure to trade against. Some traders make exceptional profit in the first half hour, but that takes discipline and experience. Fast execution speed and an unblinking ability to take profit or loss is essential, I think.

  3. yes, you may get winners, big winners, but you will get losers just as big, if you want to live with such inconsistency, good luck

  4. This is not really great advice…. looks at premarket patterns, overall patterns and make your own judgement call on when to enter or exit position. I tend to always post my best gains in the first 30 mins. However I tend to stay away from power hour, but it just depends on your method or trading.

  5. ..it's happened to me! I lost $90 in less than an hour when I decided to buy a stock for day trading purposes. The funniest thing of all is that, the stock came back up, and if I had not sold it on the day, I would have by now have made more than $300. Panic selling….

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